The opening gap down was aggressively bought, particularly in the small caps. We have seen this routine for quite some time now, as dip-buyers continue to come to play on a daily basis. Although they may not be getting rewarded in the same manner they were earlier this summer and year, there is no denying that they can defend the tape when needed.
At some point, that is going to change. But stocks like AAPL BBRY, and of course the rotation into materials and miners are all helping the bull case today. I am pleased with the action in my STLD long, which I announced my entry on this blog last Friday. A close above $16 would be a good first step in playing for a major breakout for that steel name.
SWK is another chart I have posted before, with the thesis being a weekly breakout. That stock is also impressive and the bull thesis is playing out nicely.
Adding credence to the notion of leaders lagging and laggards catching a bid are the credit card plays soft today: AXP MA V.
Overall, the market is avoiding the icebergs and giving us some pockets of decent action amidst the dog days of summer.
What are you trading into the afternoon?
holding TRQ (earnings), have positions in TC, AKS
Nice. Good luck.
I’m liking the action in CMI against a longer-term chart.
It’s a beast here…good eye.